Please tell me:
How much masternode profit?
Well, there isn't a "direct" answer (in terms of $$ amount). The reason is multi-fold. First is as the value of a PIV goes up, so then would what a MN holder makes. Secondly, PIVX has implemented a "see-saw" mechanism of rewards. Each block reward is split between Masternode Holder and Stake Holder (90% of the reward split between those two entities, 10% going to budge). So, that 90% is split based on a ratio of MN to SH. As the number of coins locked to masternodes goes above 41.5% of the total PIVX coin supply, the block reward amount will shift with more than 50% of the block reward going to staking nodes. This has the effect of making it less attractive to provision more masternodes as it has the potential to significantly lower its profitability compared to staking that has less upkeep cost.
CODE LOGIC WALKTHROUGHThe logic is intended to be simple as possible while being effective. This is to ensure its stability and to be able to easily determine its outcome and improve its logic if the need arises.
if (mNodeCoins <= (nMoneySupply * .01) && mNodeCoins > 0) {
ret = blockValue * .90;
}
The blockValue is the total number of coins per block. This value is multiplied by the variable ratio that is determined by the percentage of the masternode coins, (mNodeCoins) in relation to the total coin supply (nMoneySupply). The result ret value is the number of coins for the masternodes portion of the reward.
Above example shows the very first logic used to determine the highest masternode portion payout. You can see that if mNodecoins is less than or equal to 1% of the coin supply (nMoneySupply) and also greater than 0, the return block reward value for the masternode will be 90% of the PoS block (ret = blockValue * .90).
This logic continues for each increase in set percentages all the way until mNodeCoins is less than or equal to 99% of the coin supply.
else if (mNodeCoins <= (nMoneySupply * .99) && mNodeCoins > (nMoneySupply * .987)) {
ret = blockValue * .05;
}
Any mNodeCoins value that is beyond 99% of the total coin supply will return a fixed value equal to 1% of the blockValue. The expectation is that it should never come to this point but the logic is complete to cover all possible outcome.
else{
ret = blockValue * .01;
}
This Seesaw Reward Balance System algorithm initially started out with only 16 percentage steps; it has since been improved and now implements a total of 105 percentage steps to the variable seesaw algorithm that allows for a far more granular step amount.
SUMMARYThe Seesaw Reward Balance System that PIVX utilizes, provides numerous benefits over reward split methods used by the majority of masternode featuring Proof of Stake crypto-currencies.
It can indirectly affect the total count of masternodes in the network by varying its reward size to alter its profitability versus staking.
Promotes staking by increasing its reward payment portion when masternode count is high and thus maintaining a high level of network security.
Profitability of masternode is kept higher than staking as long as the masternode count remains below the equilibrium threshold. (Approx. 40% of coin supply)
Allows all coins owners to get rewarded for holding coins rather than just the masternode owners, hence resulting in a fairer and less centralized system
You can see a CURRENT snapshot of rewards based on all these factors (Ratio of MN/SH, current price, etc) here:
http://178.254.23.111/~pub/DN/DN_masternode_payments_stats.html
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